Please ensure Javascript is enabled for purposes of website accessibility

5-Star Stocks Poised to Pop: EnCana

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:59PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian oil and gas giant EnCana (NYSE:ECA) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at EnCana's business, and see what CAPS investors are saying about the stock right now.

EnCana facts

Headquarters (founded)

Calgary, Canada (1971)

Market Cap

$33.16 billion

Industry

Independent Oil & Gas

TTM Revenue

$30.47 billion

Management

CEO Randall Eresman

CFO Brian Ferguson

Return on Equity (average last three years)

28.1%

Dividend Yield

3.6%

Competitors

EOG Resources (NYSE:EOG),

Marathon Oil (NYSE:MRO)

CAPS members bullish on ECA also bullish on

Vale (NYSE:RIO),

Apple (NASDAQ:AAPL)

CAPS members bearish on ECA also bearish on

ExxonMobil (NYSE:XOM),

Chevron (NYSE:CVX)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 846 of the 865 members who have rated EnCana -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include richmunro and jrich0591.

Last month, richmunro noted a few of the stock's strong points: "good mnagement, excellent profit and profit potential, positioned right for future big returns."

In a pitch from a week later, jrich0591 shared that bullish attitude, elaborating on EnCana's untapped value:

Exceptionally well positioned in the energy sector. Vast energy reserves. Undervalued by any measurement. Decent yield and dividend growth history; low payout ratio. Positioned to split into separate companies -- natural gas and oil -- when global economic conditions strengthen, thus unlocking further shareholder value.

What do you think about EnCana, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ovintiv Inc. Stock Quote
Ovintiv Inc.
OVV
$48.39 (1.98%) $0.94
Apple Inc. Stock Quote
Apple Inc.
AAPL
$169.24 (2.62%) $4.32
Chevron Corporation Stock Quote
Chevron Corporation
CVX
$155.82 (0.26%) $0.41
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
XOM
$91.45 (0.95%) $0.86
Rio Tinto plc Stock Quote
Rio Tinto plc
RIO
$61.71 (0.60%) $0.37
EOG Resources, Inc. Stock Quote
EOG Resources, Inc.
EOG
$108.99 (0.69%) $0.75
Marathon Oil Corporation Stock Quote
Marathon Oil Corporation
MRO
$22.34 (1.73%) $0.38

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
373%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.